/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030616.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, June 16, 2003, Vol. 4, Issue 117 Headlines A R G E N T I N A ACINDAR: Delays $2.4M Interest Payment On Agent's Advice AEROPUERTOS ARGENTINA: To Bid for Uruguayan Airport Concession AMPRI: Goes Bankrupt On Creditor's Request AUTOMOTORES ROCA: Creditors Called To Formal Meeting CONFIABLE: Court Declares Company Bankrupt FRANCISCO L PADILLA: Summons Creditors To a Meeting HAVANNA: Potential Acquirer Seeks Partners HEROMA: Reorganization Proceeds With Creditor's Meeting HFS MEDIA: Firm, Units Start Individual Restructuring Proceedings IDEAS Y PROYECTOS: Creditor's Request Results in Bankruptcy IEBA: Files For the Argentine Equivalent of US Chapter 11 LABORATORIO APOLO: Files For "Concurso Preventivo" LIVING MODERNO: Calls Creditors To Formal Meeting MUSIMUNDO: Sale Process Suffers Setback PAN'S COMPANY: Court Calls Creditors To Formal Meeting PECOM ENERGIA: Seeks Approval To Pay ARS55.1 Mln in Dividends VENTURA: Carries Out Restructuring Plan To Stave Off Bankruptcy WELL COMPANY: Calls Creditors To Meeting B R A Z I L EMBRATEL: Bear Cuts Recommendation, Lowers ADR Price Target USIMINAS: Concludes $75M Debt Offering C H I L E MASISA: Fitch Downgrades to 'BBB-', Negative Rating Outlook TELEFONICA CTC: Decision to Select Expert Expected Thursday C O L O M B I A AVIANCA: Agrees To Settle Obligation To Tax And Customs Agency ESAQUIN: Invites Five Investors PAZ DEL RIO: Reports Profits Due To Rising Steel Prices D O M I N I C A N R E P U B L I C TRICOM: Announces Terms of its Exchange Offer E C U A D O R PETROECUADOR: Striking Workers Issue Ultimatum PETROECUADOR: Government Asks Oil Buyers To Delay Sending Tankers M E X I C O AHMSA: Braces For Rapid Decrease of Steel Prices AZTECA HOLDINGS: Announces Offers to Exchange Debt BAYERISCHE LANDESBANK: Closing Two Latin American Subsidiaries GRUPO IUSACELL: Unit Receives Temporary Amendment, Waiver GRUPO IUSACELL: Targets Up to 20% of Top 250 Corporations GRUPO TMM: Provides VAT Update P A R A G U A Y MULTIBANCO: Central Bank Sells Credit Card Portfolio for $5.63M V E N E Z U E L A INTESA: To File For Bankruptcy After PDVSA Cancels Contract PDVSA: Likely To Reduce Oil Production Following OPEC Meeting - - - - - - - - ================= A R G E N T I N A ================= ACINDAR: Delays $2.4M Interest Payment On Agent's Advice -------------------------------------------------------- Argentine steel company Acindar Industrias de Aceros SA chose not to make a US$2.4 million interest payment on the June 11 expiry date. Instead, the Company will delay the payment until "on or around" July 3 on advice of its agent, Deutsche Bank Trust Company Americas, in New York. The steelmaker, which defaulted on its debt in November 2001 amid Argentina's economic crisis, explained in a filing to the Buenos Aires stock exchange that it needs to fulfill certain contractual obligations. Acindar didn't specify what those obligations are. CONTACT: ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA 1609 Boulogne, San Isidro E. Zeballos Esq. Uruguay Buenos Aires, Argentina Phone: +54 11 47198500 Fax: +54 11 47198501 Home Page: http://www.acindar.com.ar/ir/eng/default.htm Contacts: Lic. Jose I. Giraudo, Investor Relations Manager Phone: (54-11) 4 719-8674 Fax: (54-11) 4 719-8501 Int. 8674 Lic. Andrea Dala, Investor Relations Officer Phone: (54-11) 4 719-8672 Fax: (54-11) 4 719-8501 Int. 8672 AEROPUERTOS ARGENTINA: To Bid for Uruguayan Airport Concession -------------------------------------------------------------- Aeropuertos Argentina 2000 (AA2000), concessionaire to the country's 33 airports, intends to bid for the concession to operate the Carrasco International Airport in Uruguay. The bidding will take place on 25 June 2003, relates South American Business Information. Other interested bidders are Aeropuertos de Chile and a Uruguayan consortium formed by Candysur and Neutral. Carrasco, which is the only international airport in Uruguay, is used by more than 1 million passengers per year. The new operator is expected to invest some US$70 million in infrastructure projects. AMPRI: Goes Bankrupt On Creditor's Request ------------------------------------------ Argentine medical services company Ampri S.A. was declared bankrupt following a request filed by its creditor Universal Asistense SA. Court No, 17, which is under Dr. Bavastro ruled that the Company is bankrupt due to its failure to pay the US$28,184 it owes Universal. Dr. Vanoli from Secretary No. 34 assists Dr. Bavastro. The Court assigned Mr. Hugo Trejo from Cordoba Avenue as receiver for the proceedings. Claims will be verified until August 19. CONTACT: AMPRI S.A. Azcnuenaga No. 1507 Buenos Aires Mr. Hugo Trejo 2nd Floor No. 744 Cordoba Avenue Buenos Aires AUTOMOTORES ROCA: Creditors Called To Formal Meeting ---------------------------------------------------- Automotores Roca S.A., which recently filed for "concurso preventivo" at Buenos Aires Court No.1, is calling its creditors to a formal meeting, a local source indicated, without disclosing the intended date and place. The Company, whose case is handled by Dr. Juan Dieuzeide of Court No. 1, stopped meeting its financial obligations in October 2001. Dr. Marta Belsci de Pasina, of Secretary no. 2, assists the Court. In the meantime, local reports did not mention whether a receiver has been assigned to the case. CONTACT: AUTOMOTORES S.A. San Martin 575 Buenos Aires CONFIABLE: Court Declares Company Bankrupt ------------------------------------------ Buenos Aires Court No. 18, under Doctor Bavastro declares Confiable SA bankrupt. The announcement came after a creditor of the Company, Nair Taufic Wehbe, requested for the bankruptcy. The Company owes Nair Taufic some ARS23,076.08, according to a local source. The Court, assisted by Dr. Trebino Figueroa of secretary No. 33 chose Ms. Amrua Tynik as receiver. Claims will be verified until September 19, 2003. CONTACT: CONFIABLE SA Belgrano Ave. No. 1502 Buenos Aires Ms. Maria Tynik Rivadavia Ave. No. 10444 Buenos Aires FRANCISCO L PADILLA: Summons Creditors To a Meeting ---------------------------------------------------- Buenos Aires Court No. 15 is calling the creditors of Argentine company Francisco L. Padilla e Hijos S.A. to a yet-to-be- scheduled meeting. The move is one of the first steps towards reorganizing the Company. Earlier, the Troubled Company Reporter - Latin America related that the Company, which has stopped paying its dues on February 2, 2002, submitted its motion for "concurso preventivo". The Court appointed Mr. Roberto Maglio as receiver for the proceedings. Claims will be verified until August 28, 2003. CONTACT: FRANCISCO L. PADILLA E HIJOS S.A. French 2251, P.B. Mr. Roberto Maglio, receiver No. 1296 Av. Corrientes Buenos Aires Phone: (005411) 4383 7586 HAVANNA: Potential Acquirer Seeks Partners ------------------------------------------ Juan Navarro, head of the Uruguayan-Argentine buyout holding Exxel Group, is looking for investors to join him in the acquisition of Havanna, the traditional confectionery firm acquired by The Exxel Group in 1998. Havanna started a formal restructuring proceeding in July 2002 and is currently managed by a group of creditor banks. A couple of weeks ago, Navarro presented a proposal for the acquisition of the Company and has recently asked the banks to keep such proposal as exclusive, at least until August 20. With this, Navarro wants to have more time to reach a final agreement with his financial partners, who will contribute with most of the funds demanded by the operation. The creditor banks (Deutsche Bank, Citibank, Santander Central Hispano, Creditanstalt and Sudameris) have a pledge on Havanna s shares as a consequence of an unpaid loan granted to the company after The Exxel Group acquired it. Navarro and the other investors would have proposed to buy back the loan by paying between 55% and 60% of its nominal value (US$31.5 million). Navarro and the private investors would actually take over 70% of Havanna, while the other 30% would remain in hands of the Deutsche Bank. Navarro would keep between 25% and 30% of the mentioned 70% and the rest would be given to the other investors. Although the banks have not answered Navarro's proposal yet, they would be willing to accept it, taking into account that his proposal is the best, followed by the one presented by Dolphin. HEROMA: Reorganization Proceeds With Creditor's Meeting ------------------------------------------------------- Heroma SA is calling its creditors to a formal meeting, said a local source, without revealing the date and place of the meeting. The call comes after the Company filed for "concurso preventivo" at Buenos Aires Court No. 10, which is under Dr. Hecor Chomer. The motion was labeled case no, 30677308504 at Secretary No. 19, of which Dr. Fernanda D'Alesandri takes charge. The Company ceased making debt payments on May 22 this year. CONTACT: HEROMA S.A. 8th Floor 557 Parana HFS MEDIA: Firm, Units Start Individual Restructuring Proceedings ----------------------------------------------------------------- HFS Media SA, Telearte SA Empresa de Radio y Television, Prime Argentina SA and Television ABC SA, holdings that have the license to operate the open TV channel LS 83 TV Canal 9 have started formal, individual restructuring proceedings. The first of these companies is domiciled in 853 Maipu St., 3th floor, while the other three are domiciled in 1708 Dorrego St, all in Buenos Aires. They defaulted on their debt payments on June 6, 2003. The case is in court Nų 16, under Judge Alfredo Kolliker Frers; Secretariat Nų 32, Judge Jorge Yacante. HFS Media controls the rest of the companies and its owner is the businessman and journalist, Daniel Hadad. The channel has a total debt of ARS60 million (US$21 million), divided between US dollars and pesos. The outstanding creditors are international movies distributors, such as Warner Bros., Sony, Disney and Fox, with a total debt of US$ 15 million; and local TV content producers like Endemol, Cris Morena Group and Enrique Estevanez, with over ARS3 million. Around 80% of the total debt originated when the Spanish telecommunications holding Telefonica owed the channel. The latter sold Canal 9 to HFS Media in July 2002. When that opportunity arose, HFS Media paid Telefonica and JP Morgan US$3 million and agreed to pay US$9 million at a later date. HFS also agreed to absorb the debts accrued by the channel, a condition that other investors interested in Canal 9 did not accept. Besides restructuring its debt, Canal 9 wants to put an end to its constant operating deficit. By January 2001, it was losing ARS5 million a month. Since then, it has been making an effort to reduce operating costs, by focusing its programming grid mainly on journalistic programs rather than fiction shows. The latter tend to cost more. Thanks to this course of action and to a 20% increase in advertising billing, Canal 9 managed to reduce its monthly deficit to ARS500,000. The Company assured that the debt restructuring proceeding would guarantee the continuity of the channel and said they were already renegotiating the debt with domestic creditors so as not to interrupt programming. IDEAS Y PROYECTOS: Creditor's Request Results in Bankruptcy ----------------------------------------------------------- Court No. 1 declared Ideas Y Projectos SRL bankrupt, following a request from Horacio Olmos. The Company, which is involved in goods importing and exporting, owes Mr. Olmos some ARS8,858. Dr. Juan Dieuzeide is in charge of Court No. 1, and Dr. Marta Belusci de Pasina, from Secretary No. 2, assists. The Court assigned Ms. Julia Nunez Lozano as receiver. Credit claims will be verified until August 11, 203. CONTACT: IDEAS Y PROYECTOS SRL Ground Floor C No. 2175 Cramer Street Buenos Aires Ms. Julia Nunez Lozano No. 3746 Nogoya Street Buenos Aires IEBA: Files For the Argentine Equivalent of US Chapter 11 --------------------------------------------------------- Argentine power holding company Inversora Electrica de Buenos Aires (IEBA), which defaulted on US$230 million worth of bonds in September 2001, and following the conversion of rates from US dollars into Argentine pesos, sought court protection from creditors, relates Business News Americas. In a statement filed with the Buenos Aires bourse, the Company revealed it has filed for "Concurso Preventivo de Acreedores," the Argentine equivalent of Chapter 11 bankruptcy in the US. The process will entail a local judge taking control of IEBA's remaining US$162 million in debt, and meeting with creditors to renegotiate the payments. IEBA is 55% controlled by Luxemburg-based Camuzzi International through Buenos Aires Energy Company. In April, Camuzzi offered to buy back the defaulted bonds. However, just 30% of creditors accepted the terms, and the Company cannot pay the remaining debts. IEBA's only source of income is its controlling stake in Buenos Aires province-based distributor Edea, whose cash flow has fallen sharply because of Argentina's reduced power demand, the tariff conversion into pesos, and the subsequent rates freeze. United Utilities, which owns the remaining 45% of IEBA, previously said it will not put any additional equity into the holding. LABORATORIO APOLO: Files For "Concurso Preventivo" -------------------------------------------------- The Civil and Commercial Tribunal of Rosario (Santa Fe) received a petition for "concurso preventivo" from pharmaceutical company Laboratorio Apolo SA. According to a report by local news portal Infobae, the Company's case, number 30561989865, is under the jurisdiction of Rosario's Court No. 1. However, the report did not mention whether or not the court has assigned a receiver to the case. LIVING MODERNO: Calls Creditors To Formal Meeting ------------------------------------------------- Living Moderno SA is calling its creditors to a yet-to-be- scheduled formal meeting. The move comes after the company applied for "concurso preventivo" at Buenos Aires Court No. 11, which is under Dr. Miguel Bargallo. Dr. Marcela Macchi of Secretary No. 11 assists the Court. The Company is starting reorganization proceedings. It stopped making payments on its debt May 27 this year. CONTACT: LIVING MODERNO SA No. 3884 Av. Corrientes Buenos Aires Argentina MUSIMUNDO: Sale Process Suffers Setback --------------------------------------- The sale of the Argentine chain of record stores Musimundo to Industria Librera Holding (Ilhsa), controller of its competitor Yenny-El Ateneo and the investment fund Pegasus could not be carried out finally and the pool of banks that is currently managing the Company is now looking for new potential purchasers. A couple of months ago, Ilhsa had reached a preliminary accord with the creditor banks that control Musimundo in order to take over the chain for some US$10 million. However, the negotiations hit a dead end. Although Ilhsa will not acquire Musimundo, Pegasus is still interested in the firm. In view of the decline in operations, the main record companies have decided not to supply Musimundo, since they fear the payment troubles of the firm might grow. Before subscribing the preliminary sale agreement with Ilhsa, Musimundo had reached a debt restructuring accord with its creditors, through which it will repay its liabilities with a 60% reduction, lowering the total debt to some ARS100 million (US$ 35 million). Musimundo is currently under the administration of a pool of banks led by Citibank, which took over the chain after its former owner, The Exxel Group, did not pay some bank loans. The firm is the major CDs and cassettes seller in Argentina, with 57 outlets and a market share of around 60%. Its main competitor is Yenny-El Ateneo, which holds a 15% to 20% share in music sales, although its core business involves book sales. PAN'S COMPANY: Court Calls Creditors To Formal Meeting ------------------------------------------------------ An Argentine Court is calling creditors of Pan's Company S.A. to a formal meeting. The Company, whose business is food-related, is under receivership, with Estudio Cordeo, Rojas, Nunez y Asociados as receiver. Court No. 20, under Dr. Taillade handles the Company's case with the assistance of Dr. Amaya, from Secretary No. 39. The Company declared assets of at least ARS2.72 million, and liabilities of ARS697,886. A local source reveals that the deadline for verification of claims is on August 25 this year, while the informative meeting will be held on May 19, next year. CONTACT: PAN'S COMPANY S.A. Pedro Lozano Street No. 5760 Buenos Aires Estudio Cordeo, Rojas, Nunez y Asociados Doblas 631 Buenos Aires PECOM ENERGIA: Seeks Approval To Pay ARS55.1 Mln Dividends ---------------------------------------------------------- Pending shareholders' approval, Pecom Energia S.A. informed Argentina's stock exchange that it will pay a dividend of ARS55.1 million ($1=ARS2.825), says Dow Jones. The dividend, Pecom revealed, is generated from 2002 earnings and implies a payment of ARS0.0707 per share. Shareholders are scheduled to meet on July 8 to approve the dividend payment. Pecom Energia has been owned by Petroleo Brasileiro S.A. since Brazil's state owned oil company bought a 58.6% stake in Pecom's parent company, Perez Companc last month with Argentine officials' approval. In related news, Perez Companc revealed in a filing to the stock exchange that it wouldn't pay a dividend for its results of 2002. Instead, the non-assigned earnings it would have used to pay the dividend will go to settle a debt with Pecom Energia. The decision awaits shareholders' approval at a meeting on July 8. If approved, it would mean that some of the ARS55.1 million dividend Pecom Energia will pay out to shareholders may be returned to the Company by Perez Companc as a debt repayment. VENTURA: Carries Out Restructuring Plan To Stave Off Bankruptcy --------------------------------------------------------------- Ventura, an Argentine retailer of household appliances, is carrying out a restructuring plan in order to avoid going bankrupt. The plan involves the closing down of 5 stores and the dismissal of 100 employees. Sources from the Company say they had to carry out this plan because the court that oversees its debt restructuring proceeding has not yet validated the accord Ventura reached with most of its creditors in August 2001. Since we are still legally under restructuring, we cannot use the US$1 million we had deposited in the ABM Amro as a guarantee for our import operations, which expired in December 1999, stated Daniel dos Reis, president of the company. According to Dos Reis, Ventura cannot access to loans either and they find it hard to keep operating under these circumstances. Sources from the Company affirm there are third parties that have to do with the court's slow moves in the restructuring proceeding. They suggest one of the creditor banks would be willing to take over Ventura and sell it later for more money. An executive from the firm said they have the money to pay the creditors. We made a deposit of US$11 million in an account administrated by judge Adela Fernandez and this sum is more than enough to settle the debt. But none of the banks will be able to collect until the debt restructuring accord is validated by court he added. Dos Reis acquired Ventura in August 1999. By that time, the Company had a debt of US$61 million, which was refinanced afterwards. Ventura was losing ARS3.6 million a month. After a deep restructuring process that cost ARS7 million, Dos Reis managed to reverse the red figures in July 2000. WELL COMPANY: Calls Creditors To Meeting ---------------------------------------- Argentine cleaning services firm Well Company SRL calls its creditors to a formal meeting, said a local source, without revealing the time and date of the meeting. Earlier, the Company was reported to have asked Buenos Aires Court No. 4, which is under Dr. Fernando Ottolenghi, to allow it to start reorganization proceedings. The Company stopped paying its obligations in March 2002. CONTACT: WELL COMPANY SRL Bogota 3186 =========== B R A Z I L =========== EMBRATEL: Bear Cuts Recommendation, Lowers ADR Price Target ----------------------------------------------------------- Bear Stearns cut its recommendation on Embratel, a subsidiary of US telecom giant MCI (formerly WorldCom), from "outperform" to "peer perform," reports Business News Americas. In addition, Bear revised its end-2003 price target for Embratel's ADR to US$2.60 from US$1.80 each. The revision follows Bear's revised country risk premium for Brazil, which was lowered from 1,000 basis points to 800 bps above US Treasuries. Starting June 16, Embratel's ADR ratio will change from 1,000 shares/ADR to 5,000. To see financial statements: http://bankrupt.com/misc/Embratel_Participacoes.htm CONTACT: Embratel Participacoes Silvia M.R. Pereira, (55 21) 2121-9662 fax: (55 21) 2121-6388 silvia.pereira@embratel.com.br invest@embratel.com.br USIMINAS: Concludes $75M Debt Offering -------------------------------------- Brazilian flat steelmaker Usiminas completed a US$75 million offer of one-year notes on international capital markets, Business News Americas reports, citing lead manager Banco Espirito Santo (BES). According to BES, the Company had originally offered US$50 million, but due to stronger-than-expected demand, the Company increased the offer to US$75 million. The papers, which mature June 30, 2004, will yield 6.875% at a coupon rate of 6.75%. The yield came in at the bottom end of Usiminas' price guidance of 6.875%-7.125%, says Business News Americas. The conclusion of the offering came after Usiminas denied reports that it would issue debt that would mature in at least one year, and would be guaranteed with export receipts. CONTACT: Usinas Siderurgicas de Minas Gerais Usiminas PN A Rua Prof. Jose Vieira de Mendonca, 3011 Engenheiro Nogueira 31310-260 Belo Horizonte - MG Brazil Tel +55 31 3499-8000 Fax +55 31 3499-8475 Web http://www.usiminas.com.br Contact: Jose Augusto Muller de Oliveira Gomes, Chairman ========= C H I L E ========= MASISA: Fitch Downgrades to 'BBB-', Negative Rating Outlook ----------------------------------------------------------- Fitch Ratings has downgraded the foreign and local currency ratings of Masisa S.A. (Masisa) to 'BBB-' from 'BBB'. The company's $45 million private placement that amortizes between 2004 and 2008 has been affected by this rating action. In addition to the downgrade, a Rating Outlook of Negative has been assigned to the company's debt. The rating action is the result of continued weakness in prices for the company's main products - medium-density fiberboard (MDF) and particleboard (PB) - in Chile, Brazil and Argentina. Pricing weakness is a result of decreased demand for these products in Argentina, due to the recent economic crisis, soft economic conditions in Chile and excess production capacity in Brazil. The downgrade also reflects concern about the demand for oriented strand board (OSB) in Brazil, which has led to steep discounting of this product by Masisa in that country. If the overall outlook for wood boards in Latin America does not improve significantly in the next twelve months, Masisa's credit ratings could be downgraded. Masisa generated $54 million in cash operating profits (EBITDA) during 2002, a decline from $64 million in 2000. The poor performance by the company came in spite of the addition of a new OSB plant in Brazil and new MDF plants in Brazil and Argentina during this time period. These plants cost the company approximately $240 million to construct between 2000 and 2002. In Argentina, the company's operating profit (EBIT) was less than $1 million in 2002, after accounting for more than $16 million of EBIT in 2000. Masisa ended 2002 with $147 million of cash and marketable securities and $375 million of total debt. Almost all of the cash and marketable securities balance is committed as collateral for outstanding debt. Therefore, a comparison of the company's credit quality is best made be comparing net coverage ratios. During 2002, Masisa had an EBITDA-to-net interest expense ratio of 4.0 times (x) and a net debt-to-EBITDA ratio of 4.2x. These credit protection measures compare with 7.7x and 2.5x, respectively, in 2000. Like all PB and MDF manufacturers within Latin America, Masisa's financials are sensitive to economic downturns in the region. Furthermore, with a need to export boards to Europe, Asia and North America because of excess production capacity in the region, Masisa is also subject to volatile international prices for its products. Despite price and volume volatility, historically, the company has been able to generate positive cash flows, due to its low-cost production capabilities. These capabilities are a result of Masisa's access to inexpensive fiber as well as the company's modern plants and market-leading positions. These factors have been positively incorporated into the company's credit ratings. Masisa's ratings also take into consideration the company's consistent use of cash to fund a significant portion of its expansion activities. Since 1995, Masisa has raised more than $230 million in cash by selling minority stakes in its Chilean and Argentine forests, selling its adhesives business to Georgia- Pacific and issuing additional shares. In 2002, Forestal Terranova S.A. (Terranova), a company that is owned by Inversiones Suizandina S.A. (Suizandina), purchased a controlling stake in Masisa. Suizandina, in turn, is indirectly 100% owned by Swiss businessman Stephan Schmidheiny. The ability and willingness of the controlling shareholder to financially support Masisa is positively factored into the ratings. TELEFONICA CTC: Decision to Select Expert Expected Thursday ----------------------------------------------------------- A decision to have a panel of experts resolve a conflict between Chile's largest telco Telefonica CTC Chile and telecoms regulator Subtel was expected to come in late Thursday. Business News Americas earlier reported that Telefonica CTC has exercised its option to have a panel decide on contentious points in the preliminary guidelines by which it must set its rates for 2004-2005. The main point of contention is Subtel's insistence on applying the same guidelines to corporate and residential services. If the two parties fail to decide on the third panel member, then a name will be chosen at random on June 19 from the candidates already suggested. CTC and Subtel chose the first two members bearing in mind their respective interests. CTC chose Clinica Indisa chairman Juan Antonio Guzman, who was an executive at electricity generator Gener when it was chaired by CTC chairman Bruno Philippi. Subtel chose Mario Waissbluth, CEO of the consulting group Invertec IGT. There are eight remaining candidates. CONTACT: TELEFONICA CTC CHILE Gisela Esobar, gescoba@ctc.cl Ver>nica Gaete, vgaete@ctc.cl M.Jos, Rodrguez, mjrodri@ctc.cl Florencia Acosta, macosta@ctc.cl Tel: 562-691-3867 Fax: 562-6912392 =============== C O L O M B I A =============== AVIANCA: Agrees To Settle Obligation To Tax And Customs Agency -------------------------------------------------------------- Aerovias Nacionales de Colombia SA (Avianca) agreed to pay about COP25.9 billion (US$9.1 million) it owes the Colombian tax and customs agency, according to Portafolio. The report reveals that the airline, which is based in Bogota but is reorganizing under U.S. bankruptcy law, will pay the debt through monthly installments in over three years at 26.6% interest. The agreement comes after a bankruptcy court in New York authorized the airline to cancel debts. Avianca, which is majority-owned by Valores Bavaria SA, filed for bankruptcy protection on March 21 to restructure US$130 million in debt to bondholders, aircraft leasers and suppliers. CONTACT: AVIANCA P.O. Box 151310 Av. el Dorado no. 93-30 Bogota, Colombia Phone: (1) 413 9511 (1) 295 8977 ESAQUIN: Invites Five Investors ------------------------------- Struggling to stay afloat after posting losses of COP2 billion last year, Colombia's Quindio department sanitation utility Esaquin has invited five Colombian companies to invest in the utility. The companies invited, according to Business News Americas, were Medellin multi-utility EPM; Calarca's public utility (Empresas Publicas de Calarca); water company Aguas de Manizales; water utility Aguas de Pereira; and Tulua's public utility (Empresa de Servicios Publicos de Tulua). The invitees were expected to give their answers on June 13. According to a December 2002 liquidation study the utility performed, Esaquin can cover 86% of its debt, of which 47% is due to creditors. Further, 70% of utility networks are obsolete. Without speedy financial aid, the utility may not continue functioning. "The only alternative the national government submitted was to increase rates," the paper quoted department deputy Maria del Pilar Jimenez as saying. "But if the service you provide is poor, how can you demand increases?" PAZ DEL RIO: Reports Profits Due To Rising Steel Prices ------------------------------------------------------- The rise in the prices of steel from US$296/t to US$340/t in recent months has helped Colombian steelmaker Acerias Paz del Rio report a profit of COP19 billion (currently about US$6.7 million) for the first four months of this year. The Company expects the figure to top US$8.5 million for the whole of 2003. According to Business News Americas, the Company, which is in a form of bankruptcy protection, has until July 18 to come up with a scheme to restructure its finances. In order to help the ailing Company, the government has already proposed the setting up of an investment fund, which would be used to finance a technology revamp at Paz del Rio's plant in Belen, Boyaca department, by leasing the Company the equipment needed. The plan involves setting up a fund into which workers would contribute in return for a larger share in the steelmaker. Workers would contribute bonuses such as those for Christmas or length of service, or future pay rises, while retired employees would contribute part of their pensions. In return, the government has offered to write off debts the Company owes state development agency IFI, and is prepared to offer credit guarantees for APR and other facilities, as the fund would not initially have sufficient resources. The Company, which has a capacity of some 250,000t steel, is owned principally by the department of Boyaca and some local universities. CONTACT: ACERIAS PAZ DEL RIO S.A. Carrera 8 # 13-31, Pisos 7 al 11 Bogota, D.C. Phone: (091) 282-8111 Fax: (091) 282-6268 282-3480 E-mail: apdr@multi.net.co =================================== D O M I N I C A N R E P U B L I C =================================== TRICOM: Announces Terms of its Exchange Offer --------------------------------------------- In a press release, Tricom, S.A., a regional integrated communications provider in the U.S., Caribbean and Central America, revealed Thursday the terms of its previously announced exchange offer and consent solicitation with respect to the $200 million aggregate outstanding principal amount of its 11-3/8% Senior Notes due 2004. Tricom has filed an amendment to its Form F-4 registration statement with the Securities and Exchange Commission (SEC) detailing the terms and conditions of the proposed exchange offer and consent solicitation. Upon a declaration of effectiveness by the SEC, for each $1,000 principal amount of its 11-3/8% Senior Notes tendered, the Company intends to offer: (i) $950 principal amount of 12% Senior Notes due 2009; (ii) a cash payment of $50; and (iii) warrants to purchase shares of the Company's Class A common stock, in the form of ADSs. The New Notes due September 2009 will pay initial annual cash interest of 12%. Under the indenture governing the New Notes, the Company will be required to redeem 5% of the principal amount of the New Notes in 2007 and 2008. The New Notes will have restrictive covenants substantially the same as those of the existing 11-3/8% Senior Notes. The cash payment of the exchange offer will be financed by an equity contribution from the Company's majority shareholder, GFN Corporation, Ltd. The exchange offer and consent solicitation is subject to the satisfaction of several conditions, including the receipt of tenders of at least 85% of the Company's outstanding 11-3/8% Senior Notes due 2004. Bear, Stearns & Co. Inc. has been appointed by Tricom to act as dealer manager. Questions regarding the exchange offer and consent solicitation can be directed to Bear, Stearns & Co. Inc., at (877) 696-BEAR (2327) toll free in the United States or internationally at (212) 272-5112. The registration statement relating to the exchange offer and consent solicitation has been filed with the SEC, but has not yet become effective. This press release is not an offer to sell or the solicitation of an offer to buy any of the securities to be issued in the exchange offer described above. The company expects to commence the exchange offer promptly after the SEC declares the registration statement effective. About TRICOM TRICOM, S.A. is a full service communications services provider in the Dominican Republic. We offer local, long distance, mobile, cable television and broadband data transmission and Internet services. Through TRICOM USA, we are one of the few Latin American based long distance carriers that is licensed by the U.S. Federal Communications Commission to own and operate switching facilities in the United States. Through our subsidiary, TCN Dominicana, S.A., we are the largest cable television operator in the Dominican Republic based on our number of subscribers and homes passed. We also offer digital mobile integrated services including two-way radio and paging services in Panama. For more information about TRICOM, please visit www.tricom.net . Investor Relations website: http://www.tdr-investor.com ============= E C U A D O R ============= PETROECUADOR: Striking Workers Issue Ultimatum ---------------------------------------------- Workers at Ecuador's state oil company Petroecuador told the government that they will break off a progressive strike that began Monday if the latter complies with their demands to force energy minister Carlos Arboleda to resign. Moreover, the workers are seeking a revision of the contract structure offered to private oil companies, a source from the Company told Business News Americas. Should the government deny them their demands, the workers are threatening to continue the strike and extend it to Petroecuador's oil fields, the source said. Government representatives received the ultimatum on Wednesday morning, after negotiations with union leaders broke down. The government was expected to have a formal answer by Thursday morning after discussions involving President Lucio Gutierrez, the source said. Unions are seeking Arboleda's resignation claiming that he represents a policy of privatization that is harmful to the country. Arboleda's proposed association contracts to attract private investment are "absurd, and there is no reason for it," the source said, adding that the contracts would give away the country's best oil fields to foreign companies. Arboleda, however, has said he would not resign. PETROECUADOR: Government Asks Oil Buyers To Delay Sending Tankers ----------------------------------------------------------------- Petroecuador officials revealed that the government asked some buyers of its crude oil Thursday to delay sending tankers to avoid creating problems loading the ships, as the oil workers' strike entered its fourth day, relates Dow Jones. Petroecuador has scheduled the loading of 720,000 barrels of oil, half for RWE Trading and the other half for Shell Western, which is expected to be completed by late Thursday afternoon. Officials with the international trade section of Petroecuador said that two companies -- Valero Energy and Shell Western -- have agreed to delay the sending of tankers. Ecuador normally exports about 240,000 barrels a day of petroleum. For the month of June, it is expected to load about 20 tankers. Jorge Pazmino, a manager at the SOTE heavy crude pipeline, told Dow Jones Newswires that that volume transported through that pipeline on Wednesday was 255,000 barrels, a 30% drop compared with normal levels. But according to Faustin Valencia, President of the Federation of Petroecuador Workers (Fetrapec), volumes on the SOTE pipeline have dropped about 70% from normal levels. =========== M E X I C O =========== AHMSA: Braces For Rapid Decrease of Steel Prices ------------------------------------------------ Francisco Orduna, a spokesperson of Mexican steelmaker Altos Hornos de Mexico (AHMSA), revealed that the Company expects that prices of steel, which have started to fall, may decline even further and more rapidly in the third quarter of the year, relates Business News Americas. In this context, he said "vigilance" has been stepped up to avoid dumping on the Mexican market. Moreover, the Company's annual operations plan has been redesigned to maximize profitability in the light of the new conditions. Orduna also revealed that the Company will invest US$30 million this year principally on replacement of equipment and maintenance. AHMSA describes itself as the country's biggest integrated steelmaker and has two plants in Monclova, in the northern state of Coahuila. It is Mexico's largest steelmaker in terms of production and sale of flat products such as hot- and cold-rolled plates, sheets and chrome-plated steel. It also makes long products such as profiles, structures and wire rod. The Company, which is controlled by Mexican industrial holding GAN (Grupo Acereros del Norte), has been in a form of bankruptcy protection for the last four years. CONTACT: AHMSA Prolongacion B. Juarez s/n, Monclova , Coahuila 25770 Mexico http://www.AHMSA.com Phone: +52 86 33 81 72 Fax: +52 86 33 65 66 Contacts: Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO Jorge Ancira Elizondo, Chief Financial Officer Manuel Ancira Elizondo, Chief Operating Officer AZTECA HOLDINGS: Announces Offers to Exchange Debt -------------------------------------------------- Azteca Holdings, S.A. de C.V., the controlling shareholder of TV Azteca (NYSE: TZA), one of the two largest producers of Spanish language television programming in the world, announced on Thursday its offer to exchange, subject to market and other conditions, its new 111/2% Senior Amortizing Notes due 2009 for its outstanding 101/2% Senior Secured Notes due 2003. In addition, Azteca Holdings is offering to exchange, subject to market and other conditions, the new 111/2% notes for its outstanding 103/4% Senior Secured Amortizing Notes due 2008. The exchange offers may be terminated or amended at any time prior to the expiration date, July 11, 2003, unless extended by Azteca Holdings. The exchange offers are anticipated to close on or about July 14, 2003. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933, as amended (the "Securities Act"). The new 111/2% notes being offered have not been registered under the Securities Act and until the registration of the new 111/2% notes becomes effective, the new 111/2% notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the new 111/2% notes, nor shall there be any sale of the new 111/2% notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The exchange offers are being made pursuant to an Offering Memorandum dated June 12, 2003, and the related Letters of Transmittal, which more fully set forth the terms and conditions of the exchange offers. Company Profile Azteca Holdings, S.A. de C.V. is a holding company whose principal asset is 55.0% percent of the capital stock of TV Azteca. TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a broadcast television network focused on the rapidly growing United States Hispanic market; Unefon, a Mexican mobile telephony operator focused on the mass market; and Todito.com, an Internet portal for North American Spanish speakers. BAYERISCHE LANDESBANK: Closing Two Latin American Subsidiaries -------------------------------------------------------------- Bayerische Landesbank, Germany's second largest state-owned bank, is closing down its subsidiary in Buenos Aires and Mexico City, as well as some of its foreign subsidiaries, reports South American Business Information. Moreover, BayernLB, after reducing its workforce by 300 since November 2002, will cut another 700 jobs by 2006, bringing the total to more than 15% of its workforce. Over the next three years, BayernLB aims to reduce its credit lending to customers from EUR130 billion (US$152bn) to less than EUR100 billion. The measures are part of an overall restructuring package to raise return on equity before tax from 4.9% to more than 15% by 2006. According to Financial Times, BayernLB, 50% owned by the state of Bavaria, is one of the largest providers of funders to the Mittelstand medium-sized companies in the state of Bavaria and has also expanded its international lending business. The Munich-based bank has been badly affected by the slowing global economy and a wave of high profile corporate insolvencies and loan losses in Germany and the US, says FT. BayernLB's EUR2-billion exposure to Kirch, the insolvent media group, Philipp Holzmann, the now-defunct construction group, and Fairchild Dornier, the insolvent aircraft manufacturer, forced the bank to make hefty provisions. The bank has also had to write off credits to Enron, the collapsed US energy trader. GRUPO IUSACELL: Unit Receives Temporary Amendment, Waiver --------------------------------------------------------- Grupo Iusacell, S.A. de C.V. (BMV:CEL)(NYSE:CEL) ("Iusacell" or the "Company") announced Thursday that its subsidiary, Grupo Iusacell Celular, S.A. de C.V. ("Iusacell Celular") has received an additional extension of its temporary Amendment and Waiver (the "Amendment") of certain provisions and technical defaults under its US$266 million Amended and Restated Credit Agreement, dated as of March 29, 2001 (the "Credit Agreement"). The Amendment was originally scheduled to expire on May 22, 2003 and, in April 2003, it was extended to June 13, 2003. As modified, the Amendment is now scheduled to expire on June 26 2003, subject to earlier termination under certain circumstances. This action was obtained in cooperation with the Senior Syndicated lender group, as part of the Iusacell's debt restructuring effort and provides the Company with additional time to continue working with its financial advisors, Morgan Stanley, towards the formulation of a consensual and comprehensive restructuring plan. If the Amendment is not further extended, upon its expiration, Iusacell Celular would be in default of a financial ratio covenant under the Credit Agreement, which would constitute an Event of Default (as defined in the Credit Agreement) as if the Amendment had never become effective. Additionally, the Company announced Thursday that, on June 6, 2003, Iusacell was officially notified that by disposition of the appeal filed by the government, Mexico's Supreme Court affirmed the October 21, 2002 ruling by a federal district court of Mexico City in favor of Iusacell's cellular service concessionaires in their injunction (amparo) filed against the special telecommunications tax enacted by the Mexican Congress on January 1, 2002. About Iusacell Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE:CEL; BMV:CEL) is a wireless cellular and PCS service provider in seven of Mexico's nine regions, including Mexico City, Guadalajara, Monterrey, Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service regions encompass a total of approximately 92 million POPs, representing approximately 90% of the country's total population. Iusacell is under the management and operating control of subsidiaries of Verizon Communications Inc. (NYSE:VZ). CONTACT: Grupo Iusacell, S.A. de C.V., Mexico City Investor Contacts: Russell A. Olson Phone: 011-5255-5109-5751 Email: russell.olson@iusacell.com.mx or Carlos J. Moctezuma, Investor Relations Phone: 011-5255-5109-5780 Email: carlos.moctezuma@iusacell.com.mx GRUPO IUSACELL: Targets Up to 20% of Top 250 Corporations --------------------------------------------------------- Fernando Zamarripa, Iusacell corporate business marketing director, revealed that the Mexican mobile operator aims to have 10-20% of the country's top 250 corporations using its mobile data applications by the end of 2004, relates Business News Americas. Iusacell's corporate data offering includes telemetry, database, and sales force applications, among others over WAP and SMS platforms. It has opted to partner with applications providers in order to focus on its core strength of wireless transmission. The Company already has business relationships with 10-15 hardware manufacturers, systems integrators and application providers based on different revenue sharing models, and could have 10 more partnerships by year-end, Zamarripa said. "We make a joint sales effort. It is very probable the first contact (with the client) is through a Iusacell sales person or an integrator's representative. When the project is at a more concrete stage both companies participate," according to Zamarripa. GRUPO TMM: Provides VAT Update ------------------------------ Grupo TMM, S.A. ((NYSE:TMM and BMV:TMM A), TMM), announced that on Wednesday, the Court of the First Circuit ("Federal Court"), as published in their resolution lists, issued a resolution ("amparo") regarding TFM, S.A. de C.V.'s Value Added Tax (VAT) Lawsuit, against the ruling of the Federal Tribunal of Fiscal and Administrative Justice ("Fiscal Court") issued on December 6, 2002, which denied TFM the right to receive a VAT refund. TFM is waiting to receive the official resolution from the Federal Court and will evaluate its implications, which could result in new legal proceedings from the interested parties. The company will provide additional information at such time. Headquartered in Mexico City, Grupo TMM is a Latin America's multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Grupo TMM's web site address is www.grupotmm.com and TFM's web site is www.tfm.com.mx. CONTACT: Grupo TMM Jacinto Marina, CFO Phone: 011-525-55-629-8790 Email: jacinto.marina@tmm.com.mx Brad Skinner, Investor Relations Phone: 011-525-55-629-8725 Email: brad.skinner@tmm.com.mx or Dresner Corporate Services Kristine Walczak, general investors, analysts and media Phone: 312/726-3600 Email: kwalczak@dresnerco.com or Proa Structura Marco Provencio Phone: 011-525-55-629-8758 Email: mp@proa.structura.com.mx =============== P A R A G U A Y =============== MULTIBANCO: Central Bank Sells Credit Card Portfolio for $5.63M --------------------------------------------------------------- Paraguay's government has sold the credit card portfolio of Multibanco - the local bank, which authorities intervened earlier this month due to liquidity woes, reports Business News Americas, citing a central bank spokesperson. The portfolio was sold to local bank Interbanco, Atlas, and Familiar and Sudameris bank in a transaction worth PGY35 billion (US$5.63 million). According to the central bank source, the government plans to proceed and sell off more assets of both Multibanco but no date has yet been set for the new round of sales. ================= V E N E Z U E L A ================= INTESA: To File For Bankruptcy After PDVSA Cancels Contract ----------------------------------------------------------- Intesa, the Venezuelan subsidiary of US-based IT services company Science Applications International Corporation (SAIC), is moving to declare bankruptcy. Citing company spokesman Ron Zollars, Dow Jones reveals that the move comes after its state-owned partner and main client Petroleos de Venezuela SA (PDVSA) canceled its IT services contract. "The only recourse we see is to proceed to bankruptcy to protect our suppliers," Zollars told Dow Jones Newswires in a telephone interview. The San Diego, Calif.-based company holds 60% of Intesa while PdVSA holds the remainder in a joint venture that began in 1996. Zollars claimed PdVSA owes Intesa about US$50 million in unpaid fees, took over the premises, and blocked employees' electronic access, in a "politically motivated" shutdown of the Company last November. "The net result of PdVSA's actions has been to expropriate SAIC's possessions in Venezuela," Zollars said. PdVSA then refused to renew the contract, which ran out at the end of 2002, he said. Local media has reported the government plans to block the bankruptcy, wants SAIC to pay its share of the bills to suppliers, and then award the contract to one of several other companies, including International Business Machines (IBM). PDVSA: Likely To Reduce Oil Production Following OPEC Meeting ------------------------------------------------------------- Venezuela's oil minister, Rafael Ramirez, said that state oil company PDVSA is likely to cut oil production in August following a scheduled meeting of OPEC ministers if Iraqi oil exports return to about 1 million barrels a day. In a report released by Business News Americas, Ramirez said the government is so committed to this strategy that PDVSA has already factored in lower output levels into its budget forecast for the second half of the year. At the moment, PDVSA will maintain its production at 2.9 million barrels of oil a day in line with its OPEC quota, despite the potential for higher production from three new reserves, Petrolatin reports, citing PDVSA president Ali Rodriguez. "Countries with large reserves, like Venezuela, are never happy with production limits, but we are respecting the OPEC quota because the priority is maintaining stability in the market," Rodriguez said. OPEC ministers, including Ramirez, decided Wednesday to maintain current production levels until they meet again in late July, the president of the oil cartel, Abdullah bin Hamad al-Attiyah, said, AP reported. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter Latin American is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. John D. Resnick, Edem Psamathe P. Alfeche and Oona G. Oyangoren, Editors. Copyright 2003. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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